IN THE HIGH COURT OF JUDICATURE AT PATNA
SHIVAJI PANDEY, J.
Ajab Lal Yadav - Appellant
Versus
The State of Bihar and Others - Respondents
Civil Writ Jurisdiction Case No. 23505 of 2018
Decided On : 16-03-2021
Public Distribution System – Cancellation of Fair Price Shop licence – Block Development Officer made a joint inspection and found shop closed without any intimation or displaying in notice board – Show-cause notice was issued to petitioner which he replied – Same cannot be treated to be a gross wrong committed by petitioner when he has explained reason for not opening shop – Any punishment other than cancellation of license could be passed but, cancellation of license is a punishment disproportionate to charge levelled against petitioner – There are other several irregularities found in running shop by petitioner and, as such, it requires fresh initiation of proceeding against petitioner but, present case is confined to closure of shop and other charges levelled against petitioner are not subject matter of this writ application and also there is no show-cause for the same – Order passed by Sub-Divisional Officer as well as appellate order set aside and consequences will follow. (Paras 4, 6 and 7)
JUDGMENT :
1. Heard learned counsel for the parties.
2. In this case, the petitioner is challenging the order contained in Memo No. 307 dated 20.2.2015 passed by the Sub-Divisional Officer, Banka, whereby and where under, the license of the Fair Price Shop bearing No. 01/09 has been canceled assigning reason that at the time of joint inspection, the shop was found closed. The petitioner filed an appeal being Appeal Case No. 132 of 2015-16 before the Collector, Banka but, the same was rejected by the appellate authority vide order dated 18.5.2018 and claiming that both the orders suffer from irregularity, requires interference of this Court.
3. Learned counsel for the petitioner submits that on the particular date of inspection i.e. on 3.2.2015, the shop was found closed and the same cannot be treated gross irregularity which would entail the cancellation of the license.
4. The short fact of this case is that the petitioner is a license holder for running Fair Price Shop issued under the Bihar Fair Price Shop Order, 2007. The Block Development Officer, Banka made a joint inspection on 3.2.2015 and found the shop closed without any intimation or displaying in the notice board. A show-cause notice was issued to the petitioner which he replied making a statement that he had gone to offer Puja to Deogarh but, while returning, he felt stomachache, led to his admission in the hospital which is the reason for failure to open the shop. Neither the S.D.O., Banka nor the appellate authority accepted the plea of the petitioner.
5. Learned counsel for the petitioner submits that it is a single day instance that the shop has been found to be closed and the same cannot be treated to be a gross wrong committed by the petitioner when he has explained the reason for not opening the shop and, thus, any punishment other than cancellation of license could be passed but, the cancellation of license is a punishment disproportionate to the charge leveled against the petitioner and has placed reliance on the order of the Division Bench of this Court passed in the case of CWJC No. 10213 of 2010 disposed of on 22.06.2012.
6. Learned counsel for the State submits that there are other several irregularities found in running the shop by the petitioner and, as such, it requires fresh initiation of proceeding against the petitioner but, the present case is confined to the closure of the shop and the other charges leveled against the petitioner are not the subject matter of this writ application and also there is no show-cause for the same.
7. In that view of the matter, the order contained in Memo No. 307 dated 20.2.2015 passed by the Sub-Divisional Officer, Banka as well as the appellate order dated 18.5.2018 are set aside and the consequences will follow.
8. Accordingly, this writ application stands allowed.
Fair price shop licenses cannot be cancelled without conducting a proper inquiry and adhering to principles of natural justice, including providing a show cause notice and opportunity to respond.
The legal principle established confirms that factual discrepancies in operation of licensed entities under statutory control are grounds for license cancellation.
License of fair price shop was cancelled only on the ground of lodging of FIR as well as pendency of criminal case. Apart from that there is no allegation with regard to black marketing or misuse of ....
The cancellation of a fair price shop licence without granting a personal hearing violates the principle of natural justice under Article 14 of the Constitution.
A complainant has no right to file a revision petition under section 22A of the Rajasthan Foodgrains & Other Essential Articles (Regulations of Distribution) Order, 1976.
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